Judge Again Blocks Elon Musk’s $56 Billion Tesla Pay Package
A Delaware court rejected Elon Musk’s $101 billion Tesla compensation package, despite shareholder approval. Judge Kathaleen McCormick ruled the package, consisting of stock options, was not in shareholders’ best interests, citing the board’s failure to demonstrate fairness and its close ties to Musk. The judge’s decision stands even after a shareholder vote re-approved the package, emphasizing that ratification doesn’t automatically equate to fairness. Musk, who receives no salary or bonus, argued his compensation was self-negotiated, highlighting the conflict of interest.
John Q. Hosedrinker